Russia to consider extending its oil output reduction agreement with OPEC
Moscow will weigh the deal’s positive effect on oil prices
/NOVOSTIVL/ Russia will carefully consider extending its oil output reduction agreement with the Organization of the Petroleum Exporting Countries (OPEC) and other producers. This article appeared in the Reuters.
Moscow will weigh, in particular, the deal’s positive effect on oil prices against losses in market share to United States companies, he said.
"There are many arguments both in favor of the extension and against it," Siluanov said.
"Of course, we need price stability and predictability, this is good," he said. "But we see that all these deals with OPEC result in our American partners boosting shale oil output and grabbing new markets".
Russia’s energy ministry and government will determine their stance on the pact’s extension after weighing these pros and cons and the longevity of current market trends, Siluanov said.
OPEC, Russia and other producers agreed to cut output by 1.2 million barrels per day (bpd) from January for six months to boost oil prices by reducing global inventories.
OPEC and the other producers involved in the supply agreement, an alliance known as OPEC+, are scheduled to meet to discuss extending the pact in Vienna during an OPEC meeting scheduled for June 25 and 26.